Fiscal Condition of States

KennyG · Jul 7, 2015

This is an interesting study:

Ranking the States by Fiscal Condition | Mercatus

I'm posting it here because the states that are most at financial risk tend to be states with large cities and have serious underfunding of public pensions. However, they often also have significant rural populations (i.e. Illinois, California). How does your state rank? Who is going to suffer when the bills come due?

Rayster · Jul 7, 2015

We have had an influx of people from the "yellow" states the last few years. It amazes me when "those people" complain about our way of doing things.

That is very interesting information, thanks for posting.

NoTrespassing · Jul 7, 2015

I think the states in poor fiscal condition have another thing in common besides large cities, but if I mention it, the post will probably be closed due to it becoming political.

Kevin

Kyle_in_Tex · Jul 7, 2015

Texas would be in much greater shape if we didn't have the influx of illegals.

Fawken · Jul 7, 2015

Interesting data, and we all know the problem, but it's not politically correct to talk about it. Unfortunately, I myself, am not "politically correct" and am in a very bad mood due to having to confront one of the "problems" on a "personal" level this morning to prevent a 10' gate from being "scavenged."

Old Junk Man · Jul 7, 2015

The who thing is caused by too many parasite takers and too few producing makers. They have run out of producers to Robb(tax) so they borrow the shortfall . It simply is not sustainable.

KennyG · Jul 7, 2015

I know there are a lot of politically charged arguments about how this situation was created. However, I'm more interested in how it's going to play out in the future. Each state with financial problems is going to have to address this independently. Right now there is a battle going in Illinois between the new Republican governor who is insisting on belt tightening and the Democratic legislature that's going with business as usual (as I understand it). Each state is going to have to choose some compromise between cut-backs or defaults on obligations and increases in revenues (increased taxes). California and New York have been pursuing the increased tax approach for a number of years and it doesn't seem to be working. I'm wondering where some of the other states are heading on this. Will we end up with a bunch of "mini-Greeces" at the state level?

flyerdan · Jul 7, 2015

Oregon appears to be right in the middle of the pack, but I've a feeling that it will be closer to KY in a couple years. The sad part is that we could be thriving here if we could utilize our biggest resource, all the timber that currently feeds hostile bugs and wildfires.

NorTracNY · Jul 7, 2015

New York is very "interesting" in the manner the state is doing things. They are passing unfunded mandates down to the counties. The last few years our county includes a list and cost of all the mandates. All of our taxes in the county are unfunded mandates from the state. Then the state passes a "2%" tax cap. The voters need a 60% majority to pass anything over a 2% increase. With many people seeing the Fed as artificially keeping inflation down, what will happen if inflation hits 5-10%? I just shake my head...

buckeyefarmer · Jul 7, 2015

Saw that today. Was surprised KY was where it is. Was not surprised about much of the others, although thought Ohio would be a little lower. No surprise on MD. If it wasn't for the Fed's creating all the jobs here because of base closures, MD would be in a world of hurt. Tax everything more then tax it again. At least we finally got a decent Governor after years of suffering.

wjmst · Jul 8, 2015

For most states to really become fiscally sound they need to drastically CUT services and drastically INCREASE taxes! Yeah, how well will that go over. Most states as well as the federal government are in debt way over their heads and will not escape without something drastic.

truckdiagnostics · Jul 8, 2015

Interesting data, I do believe the state's that are in the hole will pass the buck, get the feds to bail them out, maybe not completely, until all the state's are in the same hole or close to it. Then as a nation we are going to have to make a decision, unfortunately like anything it will have to get wourse before it gets better. So, the question is when is the rest of the world going to stop either loaning the US money or run out of money to loan?

NorTracNY · Jul 8, 2015

Remember it's not just foreign governments loaning the US money.

18T in debt

~30% paid by federal gov't agencies. i.e. SS buys US treasuries
6T is foreign governments (will give them incentive to not attack us?? Japan and China each are about 1.2T)
2.5T Federal Reserve (funny money)
1T Mutual funds
~2T State/local gov't, private pension funds, banks.

EddieWalker · Jul 9, 2015

I tend to look at these things as political spin, but after reading the article and knowing a little bit about a few of the states on there, it seems pretty accurate. Of the top five, Nebraska surprised me. I don't know why, it's just never been on my radar as one of the more fiscally responsible states out there, but then again, I've never thought of it as an out of control state either. There are areas in Norther Western Nebraska that I would consider retiring to!!!

Eddie

EddieWalker · Jul 9, 2015

I tend to look at these things as political spin, but after reading the article and knowing a little bit about a few of the states on there, it seems pretty accurate. Of the top five, Nebraska surprised me. I don't know why, it's just never been on my radar as one of the more fiscally responsible states out there, but then again, I've never thought of it as an out of control state either. There are areas in Norther Western Nebraska that I would consider retiring to!!!

Eddie

300UGUY · Jul 9, 2015

I think the top 6 are skewed by the amount of federal money they get. Alaska is obvious, the feds own most of the state, and with the state government, are in the top 3 of employers there. The only significant private employer is the oil pipeline business. Florida is full of folks getting SS, and Medicare, along with the fact that the retirees bring their wealth with them, that pumps up the finances. Tourism helps both of these states, more than the average. The other states are low population, and get a lot of transfer payments - SS and medicare again.

SPIKER · Jul 9, 2015

Ohio up in 7th, but we have a lot of city taxes and rural school taxes etc, the State Gov has basically pushed everything off on small cities townships etc that they can and cut funding to school fire etc. So the schools go to voters and say we are not busing & cutting sports music etc unless people vote in a land/income tax onto the land owners farmers...

Most states now also have Balanced budget acts on/in state Constitutions (Ohio does.)

Mark

dave1949 · Jul 10, 2015

This web site has more detailed state spending info. I linked Maine but any state can be chosen from the index. The info is presented with comparison charts for four to five nearby, similar states. Local/municipal spending is not included.

Maine state budget and finances - Ballotpedia

NY_Yankees_Fan · Jul 10, 2015

New Jersey ranks 49 many thanks to Chris Christie, for those who think he would be a great president, look at his track record and what he has NOT done for NJ.

Gem99ultra · Jul 10, 2015

NoTrespassing said:
I think the states in poor fiscal condition have another thing in common besides large cities, but if I mention it, the post will probably be closed due to it becoming political.

Kevin

Yep - you are so right. Any posting of facts would be political. BUT - regardless of politics, Donald Trump called a Spade a Spade. Like it or not.